HSBC 2010 Annual Report Download - page 212

HSBC HOLDINGS PLC
Report of the Directors: Governance (continued)
Employees > Subsidiary company share plans / Employee compensation and benefits
210
HSBC Finance
Following the acquisition of HSBC Finance in 2003,
all outstanding options and equity-based awards over
HSBC Finance common shares were converted into
rights to receive HSBC Holdings ordinary shares in
the same ratio as the share exchange offer for the
acquisition of HSBC Finance (2.675 HSBC
Holdings ordinary shares for each HSBC Finance
common share) and the exercise prices per share
were adjusted accordingly. No further options will
be granted under the plans.
All outstanding options and other equity-based
awards over HSBC Finance common shares granted
before 14 November 2002, being the date the
transaction was announced, vested on completion of
the acquisition. Options granted after 14 November
2002 are exercisable on their original terms, save
that they were adjusted to reflect the exchange ratio.
The following are details of options to acquire
shares in HSBC Holdings.
At 31 December 2010, the HSBC (Household)
Employee Benefit Trust 2003 held 2,335,315 HSBC
Holdings ordinary shares and 1,455 American
Depositary Shares, each of which represents five
HSBC Holdings ordinary shares, which may be used
to satisfy the exercise of employee share options.
HSBC Finance: 1996 Long-Term Executive Incentive Compensation Plan
HSBC Holdings ordinary shares of US$0.50
Dates of award
Exercise price
(US$) Exercisable
At
1 Jan
Exercised
during
Lapsed
during
At
31 Dec
from to from to from to 2010 year1 year 2010
8 Feb
2000
20 Nov
2002 9.29 18.62
8 Feb
2001
20 Nov
2012 18,105,959 306,964 6,681,169 11,117,826
1 The weighted average closing price of the shares immediately before the dates on which options were exercised was £6.44.
HSBC Bank Bermuda
Following the acquisition of HSBC Bank Bermuda
in 2004, all outstanding options over HSBC Bank
Bermuda shares were converted into rights to receive
HSBC Holdings ordinary shares based on the
consideration of US$40 for each HSBC Bank
Bermuda share and the average closing price of
HSBC Holdings ordinary shares, derived from the
London Stock Exchange Daily Official List, for the
five business days preceding the closing date of the
acquisition. No further options will be granted under
any of these plans.
All outstanding options over HSBC Bank
Bermuda shares vested on completion of the
acquisition. The following are details of options to
acquire shares in HSBC Holdings. At 31 December
2010, the HSBC (Bank of Bermuda) Employee
Benefit Trust 2004 held 2,108,830 HSBC Holdings
ordinary shares which may be used to satisfy the
exercise of employee share options.
HSBC Bank Bermuda: Executive Share Option Plan 1997
HSBC Holdings ordinary shares of US$0.50
Dates of award
Exercise price
(US$) Exercisable
At
1 Jan
Exercised
during
Lapsed
during
At
31 Dec
from to from to from to 2010 year1 year 2010
4 Feb
2000
11 Jan
2001 6.13 12.44
4 Feb
2001
11 Jan
2011 190,221 4,781 123,539 61,901
1 The weighted average closing price of the shares immediately before the dates on which options were exercised was £6.89.
HSBC Bank Bermuda: Share Option Plan 2000
HSBC Holdings ordinary shares of US$0.50
Dates of award
Exercise price
(US$) Exercisable
At
1 Jan
Exercised
during
Lapsed
during
At
31 Dec
from to from to from to 2010 year year 2010
11 Jan
2001
21 Apr
2003 9.32 15.99
11 Jan
2002
21 Apr
2013 2,250,966 – – 2,250,966